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Exchange Traded Concepts Announces Reverse Share Split for REX VolMAXX TM Long VIX Weekly Futures Strategy ETF August 2, 2017 (OKLAHOMA CITY, OK.)—Exchange Traded Concepts, LLC today announced that the Board of Trustees of Exchange Traded Concepts Trust has authorized a reverse share split for the REX VolMAXX Long VIX Weekly Futures Strategy ETF (“VMAX”). The firm will execute a 1-for-8 reverse split of the shares effective at the open of the market on August 17, 2017. The total market value of the shares outstanding will not be affected as a result of this split, except with respect to the redemption of fractional shares, as outlined below. A summary of the ETF undergoing a reverse share split is as follows. Fund Name Ticker Inception Date CUSIP Proposed Reverse Split Ratio REX VolMAXX™ Long VIX Weekly Futures Strategy ETF VMAX 5/2/2016 301505848 1 for 8 The reverse split will raise the price of the shares for the fund and decrease the number of shares outstanding, without affecting the total value of the shares outstanding. A hypothetical example of a 1- for-8 reverse split is provided as follows: Period Number of Shares Owned Hypothetical Market Price/Share ($US) Total Value ($US) Pre-Split 800 $2.00 $16,000 Post-Split 100 $16.00 $16,000 Redemption of Fractional Shares and Tax Consequences for Each Reverse Split As a result of the reverse splits, a shareholder of the ETF could potentially hold a fractional share. However, fractional shares cannot trade on Bats BZX Exchange, Inc. Thus, each ETF will redeem for cash a shareholders' fractional shares at the Fund's split-adjusted NAV. Such redemptions could cause a shareholder to realize a gain or loss. Otherwise, the reverse splits will not result in a taxable transaction for holders of ETF shares. Exchange Traded Concepts, LLC does not impose a transaction fee on shareholders for such redemptions. Brokerage Charges

Exchange Traded Concepts Announces Reverse Share … · Exchange Traded Concepts Announces Reverse Share Split for REX VolMAXXTM Long VIX Weekly Futures Strategy ETF August 2, 2017

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Page 1: Exchange Traded Concepts Announces Reverse Share … · Exchange Traded Concepts Announces Reverse Share Split for REX VolMAXXTM Long VIX Weekly Futures Strategy ETF August 2, 2017

Exchange Traded Concepts Announces Reverse Share Split for REX VolMAXXTM Long VIX

Weekly Futures Strategy ETF

August 2, 2017 (OKLAHOMA CITY, OK.)—Exchange Traded Concepts, LLC today announced that the

Board of Trustees of Exchange Traded Concepts Trust has authorized a reverse share split for the REX

VolMAXX Long VIX Weekly Futures Strategy ETF (“VMAX”). The firm will execute a 1-for-8 reverse split of

the shares effective at the open of the market on August 17, 2017. The total market value of the shares

outstanding will not be affected as a result of this split, except with respect to the redemption of

fractional shares, as outlined below. A summary of the ETF undergoing a reverse share split is as

follows.

Fund Name Ticker Inception Date CUSIP Proposed

Reverse Split

Ratio

REX VolMAXX™ Long VIX Weekly Futures

Strategy ETF

VMAX 5/2/2016 301505848 1 for 8

The reverse split will raise the price of the shares for the fund and decrease the number of shares

outstanding, without affecting the total value of the shares outstanding. A hypothetical example of a 1-

for-8 reverse split is provided as follows:

Period Number of Shares Owned Hypothetical Market

Price/Share ($US)

Total Value ($US)

Pre-Split 800 $2.00 $16,000

Post-Split 100 $16.00 $16,000

Redemption of Fractional Shares and Tax Consequences for Each Reverse Split

As a result of the reverse splits, a shareholder of the ETF could potentially hold a fractional share.

However, fractional shares cannot trade on Bats BZX Exchange, Inc. Thus, each ETF will redeem for cash

a shareholders' fractional shares at the Fund's split-adjusted NAV. Such redemptions could cause a

shareholder to realize a gain or loss. Otherwise, the reverse splits will not result in a taxable transaction

for holders of ETF shares. Exchange Traded Concepts, LLC does not impose a transaction fee on

shareholders for such redemptions.

Brokerage Charges

Page 2: Exchange Traded Concepts Announces Reverse Share … · Exchange Traded Concepts Announces Reverse Share Split for REX VolMAXXTM Long VIX Weekly Futures Strategy ETF August 2, 2017

Some brokerage charges may apply as a result of the reverse split. These charges are made directly by

the broker and are not charges from Exchange Traded Concepts, LLC.

The VolMAXX funds are the first ETFs regulated under the Investment Company Act of 1940 to offer

exposure to VIX futures. The funds seek to invest in VIX futures contracts that are near to expiration,

subject to overall liquidity and roll cost considerations, and intend to maintain a weighted average time

to expiration of less than one month at all times.

Exchange Traded Concepts, LLC has served as the Funds’ investment advisor since each Fund’s inception.

ETC is a privately-held company which provides a variety of investment services, including asset

management and financial advisory services, with collective assets under management of approximately

$3.4 billion as of July 28, 2017 through exchange traded funds.

Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before

investing. This and additional information can be found in the Funds’ prospectus, which may be

obtained by calling 1-844-REX-1414. Read the prospectus carefully before investing.

Investing involves risk, including the possible loss of principal.

The fund should be utilized only by investors who (a) understand the risks associated with the use of

derivatives, (b) are willing to assume a high degree of risk, and (c) intend to actively monitor and

manage their investments in the fund.

Exchange Traded Concepts, LLC serves as the investment advisor and Vident Investment Advisory serves

as sub-advisor to the fund. The Funds are distributed by SEI Investments Distribution Co., which is not

affiliated with Exchange Traded Concepts, LLC or any of its affiliates.

These ETFs are actively managed and there is no guarantee investments selected and strategies

employed will achieve the intended results. The Funds expect to invest primarily in VIX futures

contracts. The use of derivatives, such as futures contracts, swap agreements and options, presents risks

different from, and possibly greater than, the risks associated with investing directly in traditional

securities. The derivatives may not always be liquid. The Funds will invest in exchange-traded notes and

exchange-traded funds, and will be subject to the risks associated with such vehicles. The Funds are non-

diversified. Short sales are transactions in which a Fund sells a security it does not own. Because a short

position loses value as the security’s price increases and the market price of the shorted security could

increase without limit, the loss on a short sale is theoretically unlimited. Short sales involve leverage

because the Fund borrows securities and then sells them, effectively leveraging its assets.

The VIX Index is not directly investable. The settlement price of a VIX Futures Contract is based on the

calculation that determines the level of the VIX Index. As a result, the behavior of a VIX Futures Contract

Page 3: Exchange Traded Concepts Announces Reverse Share … · Exchange Traded Concepts Announces Reverse Share Split for REX VolMAXXTM Long VIX Weekly Futures Strategy ETF August 2, 2017

may be different from traditional futures contracts whose settlement price is based on a specific

tradable asset. When economic uncertainty increases and there is an increase in expected volatility, the

value of VIX Futures Contracts will likely also increase. Similarly, when economic uncertainty recedes

and there is an associated decrease in expected volatility, the value of VIX Futures Contracts will likely

also decrease. Futures markets are highly volatile and the use of or exposure to futures contracts may

increase volatility of the Fund’s NAV. Futures contracts are also subject to liquidity risk. Several factors

may affect the price and/or liquidity of VIX Futures Contracts, including, but not limited to: prevailing

market prices and forward volatility levels of the U.S. stock markets, equity securities included in the

S&P 500® and prevailing market prices of options on the S&P 500®, the VIX Index, options on the VIX,

VIX Futures, or any other financial instruments related to the S&P 500® and the VIX or VIX Futures;

interest rates; economic, financial, political, regulatory, geographical, biological or judicial events that

affect the current volatility reading of the VIX or the market price or forward volatility of the U.S. stock

markets; supply and demand as well as hedging activities in the listed and over-the-counter equity

derivatives markets; disruptions in trading of the S&P 500 futures contracts on the S&P 500® or options

on the S&P 500®; and the level of contango or backwardation in the VIX Futures Contracts market.